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R&D investment and future firm performance: The role of managerial overconfidence and government ownership
Author(s) -
Tebourbi Imen,
Ting Irene Wei Kiong,
Le Hanh Thi My,
Kweh Qian Long
Publication year - 2020
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3173
Subject(s) - overconfidence effect , prosperity , investment (military) , vietnamese , government (linguistics) , business , affect (linguistics) , monetary economics , finance , economics , economic growth , politics , psychology , social psychology , linguistics , philosophy , political science , law
We investigate the relationship among managerial overconfidence (MO), government ownership, and research and development (R&D) investment using data from Vietnamese public companies for the period 2007–2016. We also investigate how R&D investment, given MO and government ownership, affect future firm performance. Our results indicate that MO and government ownership are positively related to R&D investment. Conceptually, this study investigates novel factors affecting of R&D investment and their role in improving firm performance. Overall, this study emphasizes the importance of R&D investment in the corporate world, improving firm performance and, ultimately, economic prosperity.